- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 2. Time Value of Money in Finance
- Subject 2. Fixed Income Instruments and the Time Value of Money
CFA Practice Question
Jason has $500 in a savings account which earns 5% compounded annually. How much additional interest would he earn in four years if he moved the money to an account that earns 6%?
A. $21.89
B. $25.88
C. $23.49
User Contributed Comments 1
User | Comment |
---|---|
wuyi | 500*(1.06^4-1.05^4)=23.485 |